Macron and Merz debate new EU joint debt as leaders meet for competitiveness summit

French President Emmanuel Macron is pushing for the European Union to create a new common debt capacity, often called eurobonds, to fund major investments in the bloc's future. He set a June deadline for EU leaders to agree on a plan to relaunch the European economy.

Chancellor Friedrich Merz and the German government have pushed back against the idea, calling it a distraction. The debate is happening as EU leaders, including European Commission President Ursula von der Leyen, meet to discuss boosting the EU's competitiveness, with talks also covering market reforms and potential tariffs on Chinese electric vehicles.